Know Labs (KNWN) 10-Q 6 Aug 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Aug. 06, 2020
Document And Entity Information
Entity Registrant Name	KNOW LABS, INC.
Entity Central Index Key	0001074828
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NV
Entity File Number	000-30262
Entity Common Stock, Shares Outstanding		24,483,555
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Sep. 30, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 4,662,371	$ 1,900,836
Accounts receivable, net of allowance of $0 and $40,000, respectively	0	63,049
Prepaid expenses	0	6,435
Inventories, net	0	7,103
Total current assets	4,662,371	1,977,423
PROPERTY AND EQUIPMENT, NET	107,743	130,472
OTHER ASSETS
Intangible assets	144,447	274,446
Other assets	25,180	13,766
Operating lease right of use asset	100,000	243,526
TOTAL ASSETS	5,039,741	2,639,633
CURRENT LIABILITIES:
Accounts payable - trade	434,790	810,943
Accounts payable - related parties	6,628	7,048
Accrued expenses	166,235	460,055
Accrued expenses - related parties	683,677	458,500
Convertible notes payable	2,178,906	3,954,241
Note payable	226,170	0
Current portion of operating lease right of use liability	101,832	124,523
Total current liabilities	3,798,238	5,815,310
NON-CURRENT LIABILITIES:
Operating lease right of use liability, net of current portion	0	121,613
Settlement payable	825,000	0
Total non-current liabilities	825,000	121,613
COMMITMENTS AND CONTINGENCIES (Note 14)
STOCKHOLDERS' DEFICIT
Preferred stock	0	0
Common stock - $0.001 par value, 100,000,000 shares authorized, 23,926,245 and 18,366,178 shares issued and outstanding at 6/30/2020 and 9/30/2019, respectively	23,929	18,366
Additional paid in capital	52,044,021	39,085,179
Accumulated deficit	(51,654,252)	(42,403,640)
Total stockholders' equity (deficit)	416,503	(3,297,290)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	5,039,741	2,639,633
Series A Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock	0	0
Series C Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock	1,790	1,790
Series D Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock	$ 1,015	$ 1,015

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
CURRENT ASSETS:
Allowance for accounts receivable	$ 0	$ 40,000
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	5,000,000	5,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	23,926,245	18,366,178
Common stock shares outstanding	23,926,245	18,366,178
Series A Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	23,334	23,334
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Series C Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,785,715	1,785,715
Preferred stock shares issued	1,785,715	1,785,715
Preferred stock shares outstanding	1,785,715	1,785,715
Series D Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock shares authorized	1,016,014	1,016,014
Preferred stock shares issued	1,016,014	1,016,014
Preferred stock shares outstanding	1,016,014	1,016,014

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
REVENUE	$ 0	$ 381,270	$ 121,939	$ 1,577,191
COST OF SALES	0	275,819	69,726	1,202,944
GROSS PROFIT	0	105,451	52,213	374,247
RESEARCH AND DEVELOPMENT EXPENSES	375,243	441,541	1,313,546	832,555
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	634,169	689,027	3,177,661	2,381,977
OPERATING LOSS	(1,009,412)	(1,025,117)	(4,438,994)	(2,840,285)
OTHER INCOME (EXPENSE):
Interest expense	(1,188,874)	(1,462,376)	(4,170,038)	(1,871,703)
Other income	0	8,227	65,220	21,281
(Loss) gain on debt settlements	(706,800)	325,000	(706,800)	325,000
Total other (expense), net	(1,895,674)	(1,129,149)	(4,811,618)	(1,525,422)
LOSS BEFORE INCOME TAXES	(2,905,086)	(2,154,266)	(9,250,612)	(4,365,707)
Income taxes - current provision	0	0	0	0
NET LOSS	$ (2,905,086)	$ (2,154,266)	$ (9,250,612)	$ (4,365,707)
Basic and diluted loss per share	$ (0.12)	$ (0.12)	$ (0.44)	$ (0.24)
Weighted average shares of common stock outstanding- basic and diluted	23,715,823	18,197,308	20,842,782	17,955,281

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Series A Convertible Preferred Stock	Series C Convertible Preferred Stock	Series D Convertible Preferred Stock	Common Stock	Additional Paid in Capital	Accumulated Deficit	Total
Beginning balance, shares at Sep. 30, 2018	20,000	1,785,715	1,016,004	17,531,522
Beginning balance, amount at Sep. 30, 2018	$ 11	$ 1,790	$ 1,015	$ 17,531	$ 32,163,386	$ (34,791,324)	$ (2,607,591)
Stock compensation expense - employee options					171,499		171,499
Conversion of Series A Convertible Preferred Stock, shares				279,929
Conversion of Series A Convertible Preferred Stock, amount				$ 280	(280)		0
Beneficial conversion feature (Note 10)							0
Issuance of warrants to debt holders (Note 10)							0
Issuance of warrants for services related to debt offering (Note 10)							0
Net loss						(769,203)	(769,203)
Ending balance, shares at Dec. 31, 2018	20,000	1,785,715	1,016,004	17,811,451
Ending balance, amount at Dec. 31, 2018	$ 11	$ 1,790	$ 1,015	$ 17,811	32,334,605	(35,560,527)	(3,205,295)
Beginning balance, shares at Sep. 30, 2018	20,000	1,785,715	1,016,004	17,531,522
Beginning balance, amount at Sep. 30, 2018	$ 11	$ 1,790	$ 1,015	$ 17,531	32,163,386	(34,791,324)	(2,607,591)
Stock compensation expense - employee options							359,053
Beneficial conversion feature (Note 10)							2,857,960
Issuance of warrants to debt holders (Note 10)							1,384,530
Issuance of warrants for services related to debt offering (Note 10)							1,072,095
Stock based compensation - warrants							30,325
Net loss							(4,365,707)
Ending balance, shares at Jun. 30, 2019	0	1,785,715	1,016,004	18,325,191
Ending balance, amount at Jun. 30, 2019	$ 0	$ 1,790	$ 1,015	$ 1,826	38,215,465	(39,157,031)	(920,435)
Beginning balance, shares at Sep. 30, 2018	20,000	1,785,715	1,016,004	17,531,522
Beginning balance, amount at Sep. 30, 2018	$ 11	$ 1,790	$ 1,015	$ 17,531	32,163,386	(34,791,324)	(2,607,591)
Net loss							(7,612,316)
Ending balance, shares at Sep. 30, 2019	20,000	1,785,715	1,016,004	18,366,178
Ending balance, amount at Sep. 30, 2019	$ 11	$ 1,790	$ 1,015	$ 18,366	39,085,179	(42,403,640)	(3,297,290)
Beginning balance, shares at Dec. 31, 2018	20,000	1,785,715	1,016,004	17,811,451
Beginning balance, amount at Dec. 31, 2018	$ 11	$ 1,790	$ 1,015	$ 17,811	32,334,605	(35,560,527)	(3,205,295)
Stock compensation expense - employee options					91,648		91,648
Issuance of common stock for services, shares				245,000
Issuance of common stock for services, amount				$ 245	348,655		348,900
Conversion of Series A Convertible Preferred Stock, shares	(20,000)			80,000
Conversion of Series A Convertible Preferred Stock, amount	$ (11)			$ 80	(69)		0
Beneficial conversion feature (Note 10)					1,570,049		1,570,049
Issuance of warrants to debt holders (Note 10)					1,244,263		1,244,263
Issuance of warrants for services related to debt offering (Note 10)					988,876		988,876
Stock based compensation - warrants					30,325		30,325
Issuance of common stock for exercise of warrants, shares				56,518
Issuance of common stock for exercise of warrants, amount				$ 56	(56)		0
Net loss						(1,442,238)
Ending balance, shares at Mar. 31, 2019	0	1,785,715	1,016,004	18,192,969
Ending balance, amount at Mar. 31, 2019	$ 0	$ 1,790	$ 1,015	$ 18,192	36,608,296	(37,002,765)	(373,472)
Stock compensation expense - employee options					95,906		95,906
Beneficial conversion feature (Note 10)					1,287,912		1,287,912
Issuance of warrants to debt holders (Note 10)					140,266		140,266
Issuance of warrants for services related to debt offering (Note 10)					83,219		83,219
Issuance of common stock for exercise of warrants, shares				132,222
Issuance of common stock for exercise of warrants, amount				$ 134	(134)		0
Net loss						(2,154,266)	(2,154,266)
Ending balance, shares at Jun. 30, 2019	0	1,785,715	1,016,004	18,325,191
Ending balance, amount at Jun. 30, 2019	$ 0	$ 1,790	$ 1,015	$ 1,826	38,215,465	(39,157,031)	(920,435)
Beginning balance, shares at Sep. 30, 2019	20,000	1,785,715	1,016,004	18,366,178
Beginning balance, amount at Sep. 30, 2019	$ 11	$ 1,790	$ 1,015	$ 18,366	39,085,179	(42,403,640)	(3,297,290)
Stock compensation expense - employee options					399,897		$ 399,897
Stock option exercise, shares				73,191			28,688
Stock option exercise, amount				$ 73	(73)		$ 0
Beneficial conversion feature (Note 10)					330,082		330,082
Issuance of warrants to debt holders (Note 10)					168,270		168,270
Issuance of warrants for services related to debt offering (Note 10)					160,427		160,427
Issuance of common stock for exercise of warrants, shares				28,688
Issuance of common stock for exercise of warrants, amount				$ 29	(29)		0
Net loss						(3,015,013)	(3,015,013)
Ending balance, shares at Dec. 31, 2019	20,000	1,785,715	1,016,004	18,468,057
Ending balance, amount at Dec. 31, 2019	$ 11	$ 1,790	$ 1,015	$ 18,468	40,143,753	(45,418,653)	(5,253,627)
Beginning balance, shares at Sep. 30, 2019	20,000	1,785,715	1,016,004	18,366,178
Beginning balance, amount at Sep. 30, 2019	$ 11	$ 1,790	$ 1,015	$ 18,366	39,085,179	(42,403,640)	(3,297,290)
Stock compensation expense - employee options							$ 701,470
Stock option exercise, shares							354,959
Beneficial conversion feature (Note 10)							$ 3,766,074
Issuance of warrants to debt holders (Note 10)							1,783,527
Issuance of warrants for services related to debt offering (Note 10)							1,026,339
Stock based compensation - warrants							0
Net loss							(9,250,612)
Ending balance, shares at Jun. 30, 2020	0	1,785,715	1,016,004	23,926,245
Ending balance, amount at Jun. 30, 2020	$ 0	$ 1,790	$ 1,015	$ 23,929	52,044,021	(51,654,252)	416,503
Beginning balance, shares at Dec. 31, 2019	20,000	1,785,715	1,016,004	18,468,057
Beginning balance, amount at Dec. 31, 2019	$ 11	$ 1,790	$ 1,015	$ 18,468	40,143,753	(45,418,653)	(5,253,627)
Stock compensation expense - employee options					165,829		165,829
Issuance of common stock for services, shares				540,000
Issuance of common stock for services, amount				$ 540	1,025,460		1,026,000
Conversion of debt offering and accrued interest (Note 10), shares				4,114,800
Conversion of debt offering and accrued interest (Note 10), amount				$ 4,115	4,110,685		4,114,800
Beneficial conversion feature (Note 10)					105,535		105,535
Issuance of warrants to debt holders (Note 10)					21,214		21,214
Issuance of warrants for services related to debt offering (Note 10)					9,542		9,542
Issuance of common stock for exercise of warrants, shares				201,271
Issuance of common stock for exercise of warrants, amount				$ 201	(201)		0
Net loss						(3,330,513)
Ending balance, shares at Mar. 31, 2020	0	1,785,715	1,016,004	23,324,128
Ending balance, amount at Mar. 31, 2020	$ 0	$ 1,790	$ 1,015	$ 23,324	45,581,817	(48,749,166)	(3,141,220)
Stock compensation expense - employee options					135,744		135,744
Issuance of common stock for services, shares				10,000
Issuance of common stock for services, amount				$ 10	18,990		19,000
Conversion of debt offering and accrued interest (Note 10), shares				467,117
Conversion of debt offering and accrued interest (Note 10), amount				$ 470	471,725		472,195
Beneficial conversion feature (Note 10)					3,330,457		3,330,457
Issuance of warrants to debt holders (Note 10)					1,594,043		1,594,043
Issuance of warrants for services related to debt offering (Note 10)					856,370		856,370
Issuance of common stock for exercise of warrants, shares				125,000
Issuance of common stock for exercise of warrants, amount				$ 125	54,875		55,000
Net loss						(2,905,086)	(2,905,086)
Ending balance, shares at Jun. 30, 2020	0	1,785,715	1,016,004	23,926,245
Ending balance, amount at Jun. 30, 2020	$ 0	$ 1,790	$ 1,015	$ 23,929	$ 52,044,021	$ (51,654,252)	$ 416,503

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (9,250,612)	$ (4,365,707)
Adjustments to reconcile net loss to net cash (used in) operating activities
Depreciation and amortization	164,078	156,931
Issuance of capital stock for services and expenses	1,045,000	348,900
Stock based compensation - warrants	0	30,325
Stock based compensation - stock option grants	701,470	359,053
Amortization of debt discount	3,874,018	1,736,357
Provision on loss on accounts receivable	0	67,792
Right of use, net	(778)	0
Loss on sale of assets	4,663	32,777
Loss (gain) on debt settlement	706,800	(325,000)
Changes in operating assets and liabilities:
Accounts receivable	63,049	170,861
Prepaid expenses	6,435	8,889
Inventory	7,103	139,645
Other assets	(11,414)	(6,597)
Accounts payable - trade and accrued expenses	24,073	(197,697)
Deferred revenue	0	(55,946)
NET CASH (USED IN) OPERATING ACTIVITIES	(2,666,115)	(1,899,417)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in research and development equipment	(13,055)	(79,934)
NET CASH (USED IN) INVESTING ACTIVITIES	(13,055)	(79,934)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	226,170	0
Repayments of line of credit	0	(101,518)
Proceeds from convertible notes payable	5,639,500	4,242,490
Payments for issuance costs from notes payable	(479,965)	(407,321)
Issuance of common stock for warrant exercise	55,000	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	5,440,705	3,733,651
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,761,535	1,754,300
CASH AND CASH EQUIVALENTS, beginning of period	1,900,836	934,407
CASH AND CASH EQUIVALENTS, end of period	4,662,371	2,688,707
Supplemental disclosures of cash flow information:
Interest paid	0	21,299
Taxes paid	1,928	0
Non-cash investing and financing activities:
Beneficial conversion feature	3,766,074	2,857,960
Issuance of warrants to debt holders	1,783,527	1,384,530
Issuance of warrants for services related to debt offering	1,026,339	1,072,095
Cashless warrant exercise (fair value)	57,490	117,165
Cashless stock options exercise (fair value)	18,298	0
Conversion of debt offering	4,235,436	0
Conversion of accrued interest	$ 351,089	$ 0

1. ORGANIZATION

1. ORGANIZATION	9 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	Know Labs, Inc. (the “Company”) was incorporated under the laws of the State of Nevada in 1998. The Company has authorized 105,000,000 shares of capital stock, of which 100,000,000 are shares of voting common stock, par value $0.001 per share, and 5,000,000 are shares preferred stock, par value $0.001 per share. The Company is focused on the development, marketing and sales of proprietary technologies which are capable of uniquely identifying or authenticating almost any substance or material using electromagnetic energy to record, detect, and identify the unique “signature” of the substance or material. We call these our “Bio-RFID™” and “ChromaID™” technologies. Historically, the Company focused on the development of our proprietary ChromaID technology. Using light from low-cost LEDs (light emitting diodes) the ChromaID technology maps the color of substances, fluids and materials. With the Company’s proprietary processes, the Company can authenticate and identify based upon the color that is present. The color is both visible to us as humans but also outside of the humanly visible color spectrum in the near infra-red and near ultra-violet and beyond. The Company’s ChromaID scanner sees what we like to call “Nature’s Color Fingerprint.” Everything in nature has a unique color identifier and with ChromaID the Company can see, and identify, and authenticate based upon the color that is present. The Company’s ChromaID scanner is capable of uniquely identifying and authenticating almost any substance or liquid using light to record, detect and identify its unique color signature. More recently, the Company has focused upon extensions and new inventions that are derived from and extend beyond our ChromaID technology. The Company calls this new technology “Bio-RFID.” The rapid advances made with our Bio-RFID technology in our laboratory have caused us to move quickly into the commercialization phase of our Company as the Company works to create revenue generating products for the marketplace. Today, the sole focus of the Company is on its Bio-RFID technology and its commercialization. The Company is in the process of commercializing its Bio-RFID technology. The Company plans its first commercial applications to be a wearable non-invasive Continuous Glucose Monitor. This product will require approval from the United States Food and Drug Administration prior to introduction to the market. In addition, it has a technology license agreement with Allied Inventors, formerly Xinova and Invention Development Management Company, a subsidiary of Intellectual Ventures. The Company believes that its commercialization success is dependent upon its ability to significantly increase the number of customers that are purchasing and using its products. To date the Company has generated minimal revenue from sales of products derived from its ChromaID and Bio-RFID technology. The Company is currently not profitable. Even if the Company succeeds in introducing its technology and related products to its target markets, the Company may not be able to generate sufficient revenue to achieve or sustain profitability. Regulatory requirements may also inhibit the speed with which the Company’s products can enter the marketplace. ChromaID was invented by scientists under contract with the Company. Bio-RFID was invented by individuals working for the Company. The Company actively pursues a robust intellectual property strategy and has been granted fourteen patents. The Company also has several patents pending. The Company possesses all right, title and interest to the issued patents. Nine additional issued and pending patents are licensed exclusively to the Company in perpetuity by the Company’s strategic partner, Allied Inventors. On April 30, 2020, the Company approved and ratified the incorporation of Particle, Inc., a Nevada corporation. The Company is the sole shareholder as of the date of incorporation. As a result, Particle is a direct, majority owned subsidiary of the Company. Particle shall utilize the same corporate offices as the Company and shall focus on the development and commercialization of the Company’s extensive intellectual property relating to electromagnetic energy outside of the medical diagnostic arena which remains the parent company’s singular focus with its initial product, the UBAND™ non-invasive continuous glucose monitor. On June 1, 2020, the Company approved and ratified entry into an intercompany Patent License Agreement dated May 21, 2020 with its majority owned subsidiary, Particle. Pursuant to the Agreement, Particle shall receive an exclusive non-transferrable license to use certain patents and trademarks of the Company, in exchange the Company shall receive: (i) a one-time fee of $250,000 upon a successful financing of Particle, and (ii) a quarterly royalty payment equal to the greater of 5% of the Gross Sales, net of returns, from Particle or $5,000. As of June 30, 2020 the operations of Particle have generated no sales and operations are just commencing. In 2010, the Company acquired TransTech Systems, Inc. as an adjunct to the Company’s business. TransTech is a distributor of products for employee and personnel identification and authentication. TransTech has historically provided substantially all of the Company’s revenues. The financial results from our TransTech subsidiary have been diminishing as vendors of their products increasingly move to the Internet and direct sales to their customers. While it does provide the Company’s current revenues, it is not central to the Company’s current focus. Moreover, the Company has written down any goodwill associated with this acquisition. The Company shut down TransTech on June 30, 2020.

2. GOING CONCERN

2. GOING CONCERN	9 Months Ended
	Jun. 30, 2020
Exercise Price 13.500
GOING CONCERN	The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net losses $9,250,612, $7,612,316 and $3,257,597 for the nine months ended June 30, 2020 and the years ended September 30, 2019 and 2018, respectively. Net cash used in operating activities was $2,666,115, $3,104,035 and $1,117,131 for the nine months ended June 30, 2020 and the years ended September 30, 2019 and 2018, respectively. During the nine months ended June 30, 2020 and 2019, the Company incurred non-cash expenses of $6,613,451 and $2,407,135. The Company anticipates that it will record losses from operations for the foreseeable future. As of June 30, 2020, the Company’s accumulated deficit was $51,654,252. The Company has limited capital resources, and operations to date have been funded with the proceeds from private equity and debt financings and loans from Ronald P. Erickson, the Company’s Chairman of the Board and Interim Chief Financial Officer, or entities with which he is affiliated. These conditions raise substantial doubt about our ability to continue as a going concern. The audit report prepared by the Company’s independent registered public accounting firm relating to our consolidated financial statements for the year ended September 30, 2019 includes an explanatory paragraph expressing the substantial doubt about the Company’s ability to continue as a going concern. The Company believes that its cash on hand and received since June 30, 2020 will be sufficient to fund our operations through June 30, 2021. The Company needs additional financing to implement our business plan and to service our ongoing operations and pay our current debts. There can be no assurance that we will be able to secure any needed funding, or that if such funding is available, the terms or conditions would be acceptable to us. If we are unable to obtain additional financing when it is needed, we will need to restructure our operations, and divest all or a portion of our business. We may seek additional capital through a combination of private and public equity offerings, debt financings and strategic collaborations. Debt financing, if obtained, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, and could increase our expenses and require that our assets secure such debt. Equity financing, if obtained, could result in dilution to the Company’s then-existing stockholders and/or require such stockholders to waive certain rights and preferences. If such financing is not available on satisfactory terms, or is not available at all, the Company may be required to delay, scale back, eliminate the development of business opportunities and our operations and financial condition may be materially adversely affected.

3. SIGNIFICANT ACCOUNTING POLIC

3. SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS	9 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS	Basis of Presentation Principles of Consolidation Cash and Cash Equivalents Accounts Receivable and Revenue – TransTech Systems Inc. sold products directly to customers. the products were typically sold pursuant to purchase orders placed by our customers, and our terms and conditions of sale did not require customer acceptance. We accounted for a contract with a customer when there is a legally enforceable contract, which could be the customer’s purchase order, the rights of the parties are identified, the contract has commercial terms, and collectability of the contract consideration is probable. The majority of our contracts had a single performance obligation to transfer products and are short term in nature, usually less than one year. Our revenue was measured based on the consideration specified in the contract with each customer in exchange for transferring products that is generally based upon a negotiated, formula, list or fixed price. Revenue is recognized when control of the promised goods is transferred to our customer, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, in an amount that reflects the consideration we expected to be entitled to receive in exchange for those goods. The Company shut down TransTech on June 30, 2020. Allowance for Doubtful Accounts - Equipment Long-Lived Assets Intangible Assets Research and Development Expenses The Company’s current research and development efforts are primarily focused on improving our Bio-RFID technology, extending its capacity and developing new and unique applications for this technology. As part of this effort, the Company conducts on-going laboratory testing to ensure that application methods are compatible with the end-user and regulatory requirements, and that they can be implemented in a cost-effective manner. The Company also is actively involved in identifying new applications. The Company’s current internal team along with outside consultants has considerable experience working with the application of the Company’s technologies and their applications. The Company engages third party experts as required to supplement our internal team. The Company believes that continued development of new and enhanced technologies is essential to our future success. We incurred expenses of $1,313,546, $1,257,872 and $570,514 for the nine months ended June 30, 2020 and the years ended September 30, 2019 and 2018, respectively, on development activities. Fair Value Measurements and Financial Instruments Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other current assets, and accounts payable and accrued expenses approximate the fair value of the respective assets and liabilities as of June 30, 2020 and September 30, 2019 are based upon the short-term nature of the assets and liabilities. The Company has a money market account which is considered a level 1 asset. The balance as of June 30, 2020 and September 30, 2019 was $4,352,188 and $1,901,278, respectively. Derivative Financial Instruments – The Company determined that none of the conversion features within its currently outstanding convertible notes payable must be bifurcated and thus there was no derivative liability as of June 30, 2020 and September 30, 2019. Stock Based Compensation Convertible Securities Net Loss per Share As of June 30, 2019, there were options outstanding for the purchase of 2,437,668 common shares (excluding unearned stock option grants), warrants for the purchase of 17,797,090 common shares, and 4,894,071 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company had 13,262,779 common shares (9,020,264 common shares at the current price of $0.25 per share and 4,424,515 common shares at the current price of $1.00 per share) and are issuable upon conversion of convertible debentures of $6,497,556. These amounts are excluded from the June 30, 2019 net loss per share because their impact is antidilutive. Dividend Policy Use of Estimates Recent Accounting Pronouncements Based on the Company’s review of accounting standard updates issued since the filing of the 2019 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on the Company’s consolidated financial statements.

4. ACCOUNTS RECEIVABLE_CUSTOMER

4. ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION	9 Months Ended
	Jun. 30, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]
ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION	Accounts receivable were $0 and $63,049, net of allowance, as of June 30, 2020 and September 30, 2019, respectively. The Company has a total allowance for bad debt in the amount of $0 and $40,000 as of June 30, 2020 and September 30, 2019, respectively. The decrease in accounts receivable related to the shutdown of TransTech on June 30, 2020.

5. INVENTORIES

5. INVENTORIES	9 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
INVENTORIES	Inventories were $0 and $7,103 as of June 30, 2020 and September 30, 2019, respectively. Inventories consisted primarily of printers and consumable supplies, including ribbons and cards, badge accessories, capture devices, and access control components held for resale. There was a $0 and $28,000 reserve for impaired inventory as of June 30, 2020 and September 30, 2019, respectively. The decrease in inventory related to the shutdown of TransTech on June 30, 2020.

6. PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	Property and equipment as of June 30, 2020 and September 30, 2019 was comprised of the following: Estimated June 30, 2020 September 30, 2019 Machinery and equipment 2-10 years $ 315,692 $ 412,238 Leasehold improvements 2-3 years 3,612 3,612 Furniture and fixtures 2-3 years 26,855 58,051 Software and websites 3-7 years - 35,830 Less: accumulated depreciation (238,416 ) (379,259 ) $ 107,743 $ 130,472 Total depreciation expense was $51,005 and $70,265 for the nine months ended June 30, 2020 and 2019, respectively. All equipment is used for selling, general and administrative purposes and accordingly all depreciation is classified in selling, general and administrative expenses. The Company retired assets at TransTech with a net book value of $4,358 as of June 30, 2020. The Company shut down TransTech on June 30, 2020.

7. INTANGIBLE ASSETS

7. INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2020
Finite-Lived Intangible Assets, Net [Abstract]
INTANGIBLE ASSETS	Intangible assets as of June 30, 2020 and September 30, 2019 consisted of the following: Estimated June 30, September 30, Useful Lives 2020 2019 Technology 3 years $ 520,000 $ 520,000 Less: accumulated amortization (375,553 ) (245,554 ) Intangible assets, net $ 144,447 $ 274,446 Total amortization expense was $129,999 for the nine months ended June 30, 2020 and 2019, respectively. Merger with RAAI Lighting, Inc. On April 10, 2018, the Company entered into an Agreement and Plan of Merger with 500 Union Corporation, a Delaware corporation and a wholly owned subsidiary of the Company, and RAAI Lighting, Inc., a Delaware corporation. Pursuant to the Merger Agreement, the Company acquired all the outstanding shares of RAAI’s capital stock through a merger of Merger Sub with and into RAAI (the “Merger”), with RAAI surviving the Merger as a wholly owned subsidiary of the Company. The fair value of the intellectual property associated with the assets acquired was $520,000 estimated by using a discounted cash flow approach based on future economic benefits. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.

8. ACCOUNTS PAYABLE

8. ACCOUNTS PAYABLE	9 Months Ended
	Jun. 30, 2020
Accounts Payable [Abstract]
ACCOUNTS PAYABLE	Accounts payable were $434,790 and $810,943 as of June 30, 2020 and September 30, 2019, respectively. Such liabilities consisted of amounts due to vendors for inventory purchases and technology development, external audit, legal and other expenses incurred by the Company. The Company expects to settle the TransTech accounts payable during 2020. The Company shut down TransTech on June 30, 2020.

9. LEASES

9. LEASES	9 Months Ended
	Jun. 30, 2020
Leases [Abstract]
LEASES	The Company has entered into operating leases for office and development facilities. These leases have terms which range from two to three years and include options to renew. These operating leases are listed as separate line items on the Company's June 30, 2020 and September 30, 2019 Consolidated Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are also listed as separate line items on the Company's June 30, 2020 and September 30, 2019 Consolidated Balance Sheets. Based on the present value of the lease payments for the remaining lease term of the Company's existing leases, the Company recognized right-of-use assets and lease liabilities for operating leases of approximately $250,000 on October 1, 2018. Operating lease right-of-use assets and liabilities commencing after October 1, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. During the nine months ended June 30, 2020 and the year ended September 30, 2019, the Company had one lease expire and recognized the rent payments as an expense in the current period. As of June 30, 2020 and September 30, 2019, total right-of-use assets and operating lease liabilities for remaining long term lease was approximately $100,000 and $246,000, respectively. In the nine months ended June 30, 2020 and 2019, the Company recognized approximately $135,828 and $133,996, respectively in total lease costs for the leases. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Information related to the Company's operating right-of-use assets and related lease liabilities as of and for the nine months ended June 30, 2020 was as follows: Cash paid for ROU operating lease liability $100,497 Weighted-average remaining lease term 1.75 years Weighted-average discount rate 10% The minimum future lease payments as of June 30, 2020 are as follows: Year $ 2021 $ 133,996 Imputed interest (32,164 ) Total lease liability $ 101,832

10. CONVERTIBLE NOTES PAYABLE A

10. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE	Convertible notes payable as of June 30, 2020 and September 30, 2019 consisted of the following: Convertible Promissory Notes with Clayton A. Struve The Company owes Clayton A. Struve $1,071,000 under convertible promissory or OID notes. The Company recorded accrued interest of $69,671 and $62,171 as of June 30, 2020 and September 30, 2019, respectively. On May 8, 2019, the Company signed Amendment 2 to the convertible promissory or OID notes, extending the due dates to September 30, 2019. On November 26, 2019, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to June 30, 2020. Mr. Struve also invested $1,000,000 in the May 2019 Debt Offering. On May 11, 2020, the Company signed Amendments to the convertible promissory or OID notes, extending the due dates to September 30, 2020. Convertible Redeemable Promissory Notes with Ronald P. Erickson and J3E2A2Z On March 16, 2018, the Company entered into a Note and Account Payable Conversion Agreement pursuant to which (a) all $664,233 currently owing under the J3E2A2Z Notes was converted to a Convertible Redeemable Promissory Note in the principal amount of $664,233, and (b) all $519,833 of the J3E2A2Z Account Payable was converted into a Convertible Redeemable Promissory Note in the principal amount of $519,833 together with a warrant to purchase up to 1,039,666 shares of common stock of the Company for a period of five years. The initial exercise price of the warrants described above is $0.50 per share, also subject to certain adjustments. The warrants were valued at $110,545. Because the note is immediately convertible, the warrants and beneficial conversion were expensed as interest. The Company recorded accrued interest of $127,295 and $73,964 as of June 30, 2020 and September 30, 2019, respectively. On May 8, 2019, the Company signed Amendment 1 to the convertible redeemable promissory notes, extending the due dates to September 30, 2019 and increasing the interest rate to 6%. On November 26, 2019, the Company signed Amendment 2 to the convertible promissory or OID notes, extending the due dates to June 30, 2020. On May 11, 2020, the Company signed Amendment 3 to the convertible promissory or OID notes, extending the due dates to September 30, 2020. Debt Offering which Closed May 28, 2019 On May 28, 2019, the Company closed additional rounds of a debt offering and received gross proceeds of $4,242,515 in exchange for issuing Subordinated Convertible Notes (the “Convertible Notes”) and Warrants (the “Warrants”) in a private placement to 54 accredited investors, pursuant to a series of substantially identical Securities Purchase Agreements, Common Stock Warrants, and related documents. The Convertible Notes will be automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on February 15, 2020. The Convertible Notes had an original principal amount of $4,242,515 and bear annual interest of 8%. Both the principal amount and the interest are payable on a payment-in-kind basis in shares of Common Stock of the Company (the “Common Stock”). The Warrants were granted on a 1:0.5 basis (one-half Warrant for each full share of Common Stock into which the Convertible Notes are convertible). The Warrants have a five-year term and an exercise price equal to 120% of the per share conversion price of the Qualified Financing or other mandatory conversion. The Convertible Notes are initially convertible into 4,242,515 shares of Common Stock, subject to certain adjustments, and the Warrants are initially exercisable for 2,121,258 shares of Common Stock at an exercise price of $1.20 per share of Common Stock, also subject to certain adjustments. In connection with the debt offering, the placement agent for the Convertible Notes and the Warrants received a cash fee of $361,401 and warrants to purchase 542,102 shares of the Company’s common stock, all based on 8-10% of gross proceeds to the Company. The placement agent has also received a $25,000 advisory fee. The warrants issued for these services had a fair value of $1,072,095 at the date of issuance. The fair value of the warrants was recorded as debt discount (with an offset to APIC) and will be amortized over the one-year term of the Convertible Notes. The $361,401 cash fee was recorded as issuance costs and will be amortized over the one-year term of the related Convertible Notes. As part of the Purchase Agreement, the Company entered into a Registration Rights Agreement, which grants the investors “demand” and “piggyback” registration rights to register the shares of Common Stock issuable upon the conversion of the Convertible Notes and the exercise of the Warrants with the Securities and Exchange Commission for resale or other disposition. In addition, the Convertible Notes are subordinated to certain senior debt of the Company pursuant to a Subordination Agreement executed by the investors. The Convertible Notes and Warrants were issued in transactions that were not registered under the Securities Act of 1933, as amended (the “Act”) in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Act and/or Rule 506 of SEC Regulation D under the Act. In accordance to ASC 470-20-30, Debt with Conversion and Other Options, the guidance therein applies to both convertible debt and other similar instruments, including convertible preferred shares. The guidance states that “the allocation of proceeds shall be based on the relative fair values of the two instruments at time of issuance. When warrants are issued in conjunction with a debt instrument as consideration in purchase transactions, the amounts attributable to each class of instrument issued shall be determined separately, based on values at the time of issuance. The debt discount or premium shall be determined by comparing the value attributed to the debt instrument with the face amount thereof. In conjunction with the issuance of Convertible Notes and the Warrants, the Company recorded a debt discount of $2,857,960 associated with a beneficial conversion feature on the debt, which is being accreted using the effective interest method over the one-year term of the Convertible Notes. Intrinsic value of the beneficial conversion feature was calculated at the commitment date as the difference between the conversion price and the fair value of the common stock into which the security is convertible, multiplied by the number of shares into which the security is convertible. In accordance to ASC 470-20-30, if the intrinsic value of the beneficial conversion feature is greater than the proceeds allocated to the convertible instrument, the amount of the discount assigned to the beneficial conversion feature shall be limited to the amount of the proceeds allocated to the convertible instrument. The Warrants were indexed to our own stock and no down round provision was identified. The Warrants were not subject to ASC 718. Therefore, the Company concluded that based upon the conversion features, the Warrants should not be accounted for as derivative liabilities. The fair value of the Warrants was $1,384,530 and was recorded as Debt Discount (with an offset to APIC) on the date of issuance and amortized over the one-year term of the notes. During the nine months ended June 30, 2020, the Company issued 4,581,917 shares of common stock related to the automatic conversion of Convertible Notes and interest from a private placement to accredited investors in 2019. The Convertible Notes and interested were automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on February 15, 2020. Debt Offering during the Nine months ended June 30, 2020 During the nine months ended June 30, 2020, the Company closed additional rounds of a debt offering and received gross proceeds of $5,639,500 in exchange for issuing Subordinated Convertible Notes and Warrants in a private placement to accredited investors, pursuant to a series of substantially identical Securities Purchase Agreements, Common Stock Warrants, and related documents. The Convertible Notes are initially convertible into 5,639,500 shares of Common Stock, subject to certain adjustments, and the Warrants are initially exercisable for 2,819,750 shares of Common Stock at an exercise price of $1.20 per share of Common Stock, also subject to certain adjustments. The fair value of the Warrants issued to debt holders was $1,594,083 on the date of issuance and will be amortized over the one-year term of the Convertible Notes. In connection with the debt offering, the placement agent for the Convertible Notes and the Warrants received a cash fee of $411,950 and warrants to purchase 615,675 shares of the Company’s common stock, all based on 6.3-8%% of gross proceeds to the Company. The warrants issued for these services had a fair value of $1,016,797 at the date of issuance. The fair value of the warrants was recorded as debt discount (with an offset to APIC) and will be amortized over the one-year term of the Convertible Notes. The $411,950 cash fee was recorded as issuance costs and will be amortized over the one-year term of the related Convertible Notes. The Company recorded a debt discount of $3,766,074 associated with a beneficial conversion feature on the debt, which is being accreted using the effective interest method over the one-year term of the Convertible Notes. During the nine months ended June 30, 2020, amortization related to the 2019 and 2020 debt offerings of $4,109,599 of the beneficial conversion feature, warrants issued to debt holders and placement agent was recognized as interest expense in the consolidated statements of operations. Convertible notes payable as of June 30, 2020 and September 30, 2019 are summarized below: June 30, 2020 September 30, 2019 Convertible note- Clayton A. Struve $ 1,071,000 $ 1,071,000 Convertible note- Ronald P. Erickson and affiliates 1,184,066 1,184,066 2019 Convertible notes 4,242,490 4,242,515 Q1 2020 Convertible notes 520,000 - Q2 2020 Convertible notes 195,000 - Q3 2020 Convertible notes 4,924,500 - Bousted fee refund (originally booked as contra debt) 50,000 - Less conversions (4,242,490 ) - Less debt discount - BCF (3,077,151 ) (1,273,692 ) Less debt discount - warrants (1,485,512 ) (616,719 ) Less debt discount - warrants issued for services (1,202,997 ) (652,919 ) $ 2,178,906 $ 3,954,251 Note Payable On April 30, 2020, the Company received $226,170 under the Paycheck Protection Program of the U.S. Small Business Administration’s 7(a) Loan Program pursuant to the Coronavirus, Aid, Relief and Economic Security Act (CARES Act), Pub. Law 116-136, 134 Stat. 281 (2020). During the nine months ended June 30, 2020, the Company recorded interest expense of $390. The Company is utilizing the funds in accordance with the legal requirements and expects this loan to be forgiven.

11. EQUITY

11. EQUITY	9 Months Ended
	Jun. 30, 2020
Equity [Abstract]
EQUITY	Authorized Capital Stock The Company authorized 105,000,000 shares of capital stock, of which 100,000,000 are shares of voting common stock, par value $0.001 per share, and 5,000,000 are shares preferred stock, par value $0.001 per share. As of June 30, 2020, the Company had 23,926,245 shares of common stock issued and outstanding, held by 126 stockholders of record. The number of stockholders, including beneficial owners holding shares through nominee names, is approximately 2,300. Each share of common stock entitles its holder to one vote on each matter submitted to the stockholders for a vote, and no cumulative voting for directors is permitted. Stockholders do not have any preemptive rights to acquire additional securities issued by the Company. As of June 30, 2020, there were options outstanding for the purchase of 4,895,000 common shares (including unearned stock option grants totaling 2,680,000 shares related to performance targets), warrants for the purchase of 20,663,573 common shares, and 8,108,356 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company currently has 14,659,764 common shares (9,020,264 common shares at the current price of $0.25 per share and 5,639,500 common shares at the current price of $1.00 per share) and are issuable upon conversion of convertible debentures of $7,894,566. All of which could potentially dilute future earnings per share. Voting Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock with a par value of $0.001. Series C and D Preferred Stock and Warrants On August 5, 2016, the Company closed a Series C Preferred Stock and Warrant Purchase Agreement with Clayton A. Struve, an accredited investor for the purchase of $1,250,000 of preferred stock with a conversion price of $0.70 per share. The preferred stock has a yield of 8% and an ownership blocker of 4.99%. In addition, Mr. Struve received a five-year warrant to acquire 1,785,714 shares of common stock at $0.70 per share. On August 14, 2017, the price of the Series C Stock were adjusted to $0.25 per share pursuant to the documents governing such instruments. On June 30, 2020 and September 30, 2019 there are 1,785,715 Series C Preferred shares outstanding. As of June 30, 2020, and September 30, 2019, the Company has 1,016,014 of Series D Preferred Stock outstanding with Clayton A. Struve, an accredited investor. On August 14, 2017, the price of the Series D Stock were adjusted to $0.25 per share pursuant to the documents governing such instruments. The Series D Preferred Stock is convertible into shares of common stock at a price of $0.25 per share or by multiplying the number of Series D Preferred Stock shares by the stated value and dividing by the conversion price then in effect, subject to certain diluted events, and has the right to vote the number of shares of common stock the Series D Preferred Stock would be issuable on conversion, subject to a 4.99% blocker. The Preferred Series D has an annual yield of 8% The Series D Preferred Stock is convertible into shares of common stock at a price of $0.25 per share or by multiplying the number of Series D Preferred Stock shares by the stated value and dividing by the conversion price then in effect, subject to certain diluted events, and has the right to vote the number of shares of common stock the Series D Preferred Stock would be issuable on conversion, subject to a 4.99% blocker. The Preferred Series D has an annual yield of 8% if and when dividends are declared. Series F Preferred Stock On August 1, 2018, the Company filed with the State of Nevada a Certificate of Designation establishing the Designations, Preferences, Limitations and Relative Rights of Series F Preferred Stock. The Designation authorized 500 shares of Series F Preferred Stock. The Series F Preferred Stock shall only be issued to the current Board of Directors on the date of the Designation’s filing and is not convertible into common stock. As set forth in the Designation, the Series F Preferred Stock has no rights to dividends or liquidation preference and carries rights to vote 100,000 shares of common stock per share of Series F upon a Trigger Event, as defined in the Designation. A Trigger Event includes certain unsolicited bids, tender offers, proxy contests, and significant share purchases, all as described in the Designation. Unless and until a Trigger Event, the Series F shall have no right to vote. The Series F Preferred Stock shall remain issued and outstanding until the date which is 731 days after the issuance of Series F Preferred Stock (“Explosion Date”), unless a Trigger Event occurs, in which case the Explosion Date shall be extended by 183 days. As of June 30, 2020 and September 30, 2019, there are no Series F shares outstanding. Securities Subject to Price Adjustments In the future, if the Company sells its common stock at a price below $0.25 per share, the exercise price of 8,108,356 outstanding shares of Series C and D Preferred Stock that adjust below $0.25 per share pursuant to the documents governing such instruments. In addition, the conversion price of Convertible Notes Payable of $7,894,566 or 14,659,764 common shares (9,020,264 common shares at the current price of $0.25 per share and 5,639,500 common shares at the current price of $1.00 per share) and the exercise price of additional outstanding warrants to purchase 12,738,286 shares of common stock would adjust below $0.25 per share pursuant to the documents governing such instruments. Warrants totaling 5,763,842 would adjust below $1.20 per share pursuant to the documents governing such instruments. Common Stock All of the offerings and sales described below were deemed to be exempt under Rule 506 of Regulation D and/or Section 4(a)(2) of the Securities Act. No advertising or general solicitation was employed in offering the securities, the offerings and sales were made to a limited number of persons, all of whom were accredited investors and transfer was restricted by the company in accordance with the requirements of Regulation D and the Securities Act. All issuances to accredited and non-accredited investors were structured to comply with the requirements of the safe harbor afforded by Rule 506 of Regulation D, including limiting the number of non-accredited investors to no more than 35 investors who have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of an investment in our securities. The following equity issuances occurred during the nine months ended June 30, 2020: On November 9, 2019, a former employee exercised stock option grants on a cashless basis. The former employee received 73,191 shares of common stock for vested stock option grants. The stock option grant had an exercise price of $0.25 per share. During the nine months ended June 30, 2020, the Company issued 550,000 shares of restricted common stock for services. The shares were issued were valued at $1.90 per share, the market price of our common stock, or $1,045,000. During the nine months ended June 30, 2020, the Company issued 4,581,917 shares of common stock related to the automatic conversion of Convertible Notes and interest from a private placement to accredited investors in 2019. The Convertible Notes and interested were automatically converted to Common Stock at $1.00 per share on the one year anniversary starting on February 15, 2020. During the nine months ended June 30, 2020, the Company issued 354,959 shares of common stock at $0.789 per share related to the exercise of warrants. Warrants to Purchase Common Stock The following warrant transactions occurred during the nine months ended June 30, 2020: During the nine months ended June 30, 2020, the Company issued 354,959 shares of common stock at $0.923 per share and cancelled warrants to purchase 213,983 shares of common stock at $$1.065 per share to related to the exercise of warrants. During the nine months ended June 30, 2020, the Company issued 50,000 shares of common stock at $2.00 per share. The warrant was valued at $1.765 per share. Debt Offering Warrants The Warrants issued for the 2020 Debt Offering were granted on a 1:0.5 basis (one-half Warrant for each full share of Common Stock into which the Convertible Notes are convertible). The Warrants have a five-year term and an exercise price equal to 120% of the per share conversion price of the Qualified Financing or other mandatory conversion. Warrants issued in connection with 2020 debt offering are initially exercisable for 2,819,750 shares of Common Stock at an exercise price of $1.20 per share of Common Stock, also subject to certain adjustments. In connection with the 2020 debt offering, the placement agent for the Convertible Notes and the Warrants received warrants to 615,675 shares of the Company’s common stock, all based on 8% of gross proceeds to the Company. A summary of the warrants outstanding as of June 30, 2020 were as follows: June 30, 2020 Weighted Average Exercise Shares Price Outstanding at beginning of period 17,747,090 $ 0.455 Issued 3,485,425 1.211 Exercised (354,959 ) (0.923 ) Forfeited (213,983 ) (1.065 ) Expired - - Outstanding at end of period 20,663,573 $ 0.570 Exercisable at end of period 20,663,573 The following table summarizes information about warrants outstanding and exercisable as of June 30, 2020: June 30, 2020 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exercisable Price 13,233,286 2.00 $ 0.250 13,233,286 $ 0.250 714,286 1.08 0.700 714,286 0.700 882,159 1.37 1.000 882,159 1.000 5,763,842 4.40 1.20-1.50 5,763,842 1.20-1.50 70,000 4.26 2.00-4.08 70,000 2.34-4.08 20,663,573 3.36 $ 0.570 20,663,573 $ 0.570 The significant weighted average assumptions relating to the valuation of the Company’s warrants for the nine months ended June 30, 2020 were as follows: Assumptions Dividend yield 0% Expected life 5 years Expected volatility 176%-177% Risk free interest rate 1.51%-1.71% There were vested and in the money warrants of 20,593,573 as of June 30, 2020 with an aggregate intrinsic value of $26,079,148.

12. STOCK OPTIONS

12. STOCK OPTIONS	9 Months Ended
	Jun. 30, 2020
Equity [Abstract]
STOCK OPTIONS	On May 22, 2019, the Compensation Committee approved an amendment to its 2011 Stock Incentive Plan increasing the number of shares of common stock reserved under the Incentive Plan from 2,500,000 to 3,000,000 to common shares. There were options outstanding for the purchase of 4,895,000 common shares (including unearned stock option grants totaling 2,680,000 shares related to performance targets). Determining Fair Value under ASC 718 The Company records compensation expense associated with stock options and other equity-based compensation using the Black-Scholes-Merton option valuation model for estimating fair value of stock options granted under our plan. The Company amortizes the fair value of stock options on a ratable basis over the requisite service periods, which are generally the vesting periods. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company estimates the volatility of our common stock based on the historical volatility of its own common stock over the most recent period corresponding with the estimated expected life of the award. The Company bases the risk-free interest rate used in the Black Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. The Company has not paid any cash dividends on our common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the BlackScholes-Merton option valuation model and adjusts share-based compensation for changes to the estimate of expected equity award forfeitures based on actual forfeiture experience. The effect of adjusting the forfeiture rate is recognized in the period the forfeiture estimate is changed. Stock Option Activity The Company had the following stock option transactions during the nine months ended June 30, 2020: During the nine months ended June 30, 2020, the Company granted stock option grants to executives, directors and consultants for 3,025,000 shares with an exercise price of $1.126 per share. The grants expire in five years and generally vest quarterly over four years. Stock option grants totaling 2,400,000 shares of common stock are performance stock option grants and are not vested until the performance is achieved. During the nine months ended June 30, 2020, executives and employees voluntarily cancelled stock option grants for 2,589,477 shares with an exercise price of $2.656 per share. On November 9, 2019, a former employee exercised stock option grants on a cashless basis. The former employee received 73,191 shares of common stock for vested stock option grants totaling 93,750 shares. The stock option grant had an exercise price of $0.25 per share. There are currently 4,895,000 (including unearned stock option grants totaling 2,680,000 shares related to performance targets) options to purchase common stock at an average exercise price of $1.163 per share outstanding as of June 30, 2020 under the 2011 Stock Incentive Plan. The Company recorded $135,744 and $359,051 of compensation expense, net of related tax effects, relative to stock options for the nine months ended June 30, 2020 and 2019 and in accordance with ASC 718. As of June 30, 2020, there is approximately $479,209, net of forfeitures, of total unrecognized costs related to employee granted stock options that are not vested. These costs are expected to be recognized over a period of approximately 3.94 years. Stock option activity for the nine months ended June 30, 2020 and the years ended September 30, 2019 and 2018 was as follows: Weighted Average Options Exercise Price $ Outstanding as of September 30, 2017 15,404 $ 14.68 $ 226,059 Granted 2,180,000 1.683 3,668,500 Exercised - - - Forfeitures (12,736 ) 14.764 (188,040 ) Outstanding as of September 30, 2018 2,182,668 1.698 3,706,519 Granted 2,870,000 2.615 7,504,850 Exercised - - - Forfeitures (520,000 ) (3.906 ) (2,031,000 ) Outstanding as of September 30, 2019 4,532,668 2.025 9,180,369 Granted 3,025,000 1.126 3,406,600 Exercised (73,191 ) (0.250 ) (18,298 ) Forfeitures (2,589,477 ) (2.656 ) (6,877,721 ) Outstanding as of June 30, 2020 4,895,000 $ 1.163 $ 5,690,950 The following table summarizes information about stock options outstanding and exercisable as of June 30, 2020: Range of Exercise Prices Number Outstanding Weighted Average Remaining Life In Years Weighted Average Exercise Price Outstanding Number Exercisable Weighted Average Exercise Price Exercisable $ 0.25 230,000 2.96 $ 0.250 115,000 $ 0.250 1.10-1.25 2,940,000 4.35 1.36 270,833 1.139 1.28-1.50 1,610,000 4.35 1.31 585,625 1.292 1.79-2.25 115,000 4.00 0.96 65,000 0.852 4,895,000 3.94 $ 1.163 1,036,458 $ 1.186 There were in the money stock option grants of 4,895,000 shares as of June 30, 2020 with an aggregate intrinsic value of $2,679,000. On May 21, 2020, Particle approved a 2020 Stock Incentive Plan and reserved 8,000,000 shares under the Plan. The Plan requires vesting annually over four years, with no shares vested in the first two quarters. On May 21, 2020, Particle approved stock option grants for 3,900,000 shares at $0.10 per share. The stock option grants vest annually over four years, with no vesting in the first two quarters. On May 21, 2020, Particle approved stock option grants for 1,500,000 shares at $0.10 per share to both Phillip A. Bosua and Ronald P. Erickson. The stock option grants vest (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. All stock option grants were finalized during July 2020.

13. OTHER SIGNIFICANT TRANSACTI

13. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	9 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES	Related Party Transactions with Ronald P. Erickson On October 4, 2019, Ronald P. Erickson voluntarily cancelled a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grant was related to performance and was not vested. On November 4, 2019, the Company granted a stock option grant to Ronald P. Erickson for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon uplisting to the NASDAQ or NYSE exchanges. On January 1, 2020, the Company issued 100,000 shares of restricted common stock to Ronald P. Erickson. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $190,000. On April 29, 2020, the Company increased the salary of Ronald P. Erickson by $20,000 per year. On June 1, 2020, the Company began paying Mr. Erickson $10,000 per month for his work on Particle, Inc. Mr. Erickson and/or entities with which he is affiliated also have accrued compensation, travel and interest of approximately $575,797 and $487,932 as of June 30, 2020 and September 30, 2019, respectively. On May 21, 2020, Particle approved a stock option grant for 1,500,000 shares at $0.10 per share to Ronald P. Erickson. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was finalized during July 2020. Related Party Transaction with Phillip A. Bosua On October 4, 2019, Philip A. Bosua voluntarily cancellated a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grants was related to performance and was not vested. On November 4, 2019, the Company granted a stock option grant to Philip A. Bosua for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon FDA approval of the UBAND blood glucose monitor. On January 1, 2020, the Company issued 150,000 shares of restricted common stock to Phillip A. Bosua. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $285,000. On April 29, 2020, the Company increased the salary of Phillip A. Bosua by $20,000 per year. On June 1, 2020, the Company began paying Mr. Bosua $10,000 per month for his work on Particle, Inc. On May 21, 2020, Particle approved a stock option grant for 1,500,000 shares at $0.10 per share to Phillip A. Bosua. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was finalized during July 2020. Other Stock Option Grants and Cancellations On November 4, 2019, the Company granted stock option grants to two directors totaling 105,000 shares with an exercise price of $1.10 per share. The stock option grants expire in five years. The stock option grants vested immediately. On January 1, 2020, the Company issued 120,000 shares of restricted common stock to three directors. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $228,000.

14. COMMITMENTS, CONTINGENCIES

14. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	9 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS	Legal Proceedings The Company may from time to time become a party to various legal proceedings arising in the ordinary course of our business. The Company is currently not a party to any pending legal proceeding that is not ordinary routine litigation incidental to our business. Properties and Operating Leases The Company is obligated under the following leases for its various facilities. Corporate Offices On April 13, 2017, the Company leased its executive office located at 500 Union Street, Suite 810, Seattle, Washington, USA, 98101. The Company leases 943 square feet and the net monthly payment is $2,672. The monthly payment increases approximately 3% each year and the lease expires on May 31, 2022. Lab Facilities and Executive Offices On February 1, 2019, the Company leased its lab facilities and executive offices located at 915 E Pine Street, Suite 212, Seattle, WA 98122. The Company leases 2,642 square feet and the net monthly payment is $8,256. The monthly payment increases approximately 3% on July 1, 2019 and annually thereafter. The lease expires on June 30, 2021 and can be extended. On June 26, 2020, the Company leased temporary lab facilities located at 3131 Western Avenue, Suite A350, Seattle, WA 98121. The Company leased 5,707 square feet and the net monthly payment is $11,414. The lease expires on June 30, 2021 and can be terminated with 30 days written notice.

15. SEGMENT REPORTING

15. SEGMENT REPORTING	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
SEGMENT REPORTING	The management of the Company considers the business to have two operating segments (i) the development of the Bio-RFID™” and “ChromaID™” technologies; (ii) Particle, Inc. technology; and (iii) TransTech, a distributor of products for employee and personnel identification and authentication. TransTech has historically provided substantially all of the Company’s revenues. TransTech was shut down on June 30, 2020. Particle just commenced operations in the quarter ended June 30, 2020. The reporting for the three and nine months ended June 30, 2020 and 2019 was as follows (in thousands): Segment Gross Operating Segment Segment Revenue Margin Profit (Loss) Assets Three Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (932 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business - - (2 ) - Total segments $ - $ - $ (1,009 ) $ 5,040 Three Months Ended June 30, 2019 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (980 ) $ 3,150 TransTech distribution business 381 105 (45 ) 173 Total segments $ 381 $ 105 $ (1,025 ) $ 3,323 Segment Gross Operating Segment Segment Revenue Margin Profit (Loss) Assets Nine Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (4,368 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business 122 52 4 - Total segments $ 122 $ 52 $ (4,439 ) $ 5,040 Nine Months Ended June 30, 2019 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (2,759 ) $ 3,150 TransTech distribution business 1,577 374 (81 ) 173 Total segments $ 1,577 $ 374 $ (2,840 ) $ 3,323 During the nine months ended June 30, 2020, the Company incurred non-cash expenses of $6,613,451.

16. SUBSEQUENT EVENTS

16. SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	The Company evaluated subsequent events, for the purpose of adjustment or disclosure, up through the date the financial statements were issued. Subsequent to June 30, 2020, there were the following material transactions that require disclosure: On July 1, 2020, the Company entered into a Settlement Agreement and General Mutual Release with a shareholder of the Company. On July 6, 2020, the shareholder paid $125,000 to the Company and the Company issued 500,000 shares of common stock. The Company accrued for the loss on debt settlement of $825,000 as of June 30, 2020 which represents the difference between the fair market value of the stock and $125,000 paid by the shareholder. During July 2020, Particle closed Simple Agreement for Future Equity (SAFE) funding with accredited investors of $785,000 and received gross proceeds of $733,585. In connection with the SAFE funding, the placement agent for the private placement received a cash fee of $47,100. On May 21, 2020, Particle approved stock option grants for 3,900,000 shares at $0.10 per share. The stock option grants vest annually over four years, with no vesting in the first two quarters. On May 21, 2020, Particle approved stock option grants for 1,500,000 shares at $0.10 per share to both Phillip A. Bosua and Ronald P. Erickson. The stock option grants vest (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. All stock option grants were finalized during July 2020.

3. SIGNIFICANT ACCOUNTING POL_2

3. SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS (Policies)	9 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
Principles of Consolidation	Principles of Consolidation
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable and Revenue	Accounts Receivable and Revenue – TransTech Systems Inc. sold products directly to customers. the products were typically sold pursuant to purchase orders placed by our customers, and our terms and conditions of sale did not require customer acceptance. We accounted for a contract with a customer when there is a legally enforceable contract, which could be the customer’s purchase order, the rights of the parties are identified, the contract has commercial terms, and collectability of the contract consideration is probable. The majority of our contracts had a single performance obligation to transfer products and are short term in nature, usually less than one year. Our revenue was measured based on the consideration specified in the contract with each customer in exchange for transferring products that is generally based upon a negotiated, formula, list or fixed price. Revenue is recognized when control of the promised goods is transferred to our customer, which is either upon shipment from our dock, receipt at the customer’s dock, or removal from consignment inventory at the customer’s location, in an amount that reflects the consideration we expected to be entitled to receive in exchange for those goods. The Company shut down TransTech on June 30, 2020.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts -
Equipment	Equipment
Long-Lived Assets	Long-Lived Assets
Intangible Assets	Intangible Assets
Research and Development Expenses	Research and Development Expenses The Company’s current research and development efforts are primarily focused on improving our Bio-RFID technology, extending its capacity and developing new and unique applications for this technology. As part of this effort, the Company conducts on-going laboratory testing to ensure that application methods are compatible with the end-user and regulatory requirements, and that they can be implemented in a cost-effective manner. The Company also is actively involved in identifying new applications. The Company’s current internal team along with outside consultants has considerable experience working with the application of the Company’s technologies and their applications. The Company engages third party experts as required to supplement our internal team. The Company believes that continued development of new and enhanced technologies is essential to our future success. We incurred expenses of $1,313,546, $1,257,872 and $570,514 for the nine months ended June 30, 2020 and the years ended September 30, 2019 and 2018, respectively, on development activities.
Fair Value Measurements and Financial Instruments	Fair Value Measurements and Financial Instruments Fair Value Measurement and Disclosures Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one inputs that are either directly or indirectly observable; and. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The recorded value of other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other current assets, and accounts payable and accrued expenses approximate the fair value of the respective assets and liabilities as of June 30, 2020 and September 30, 2019 are based upon the short-term nature of the assets and liabilities. The Company has a money market account which is considered a level 1 asset. The balance as of June 30, 2020 and September 30, 2019 was $4,352,188 and $1,901,278, respectively.
Derivative Financial Instruments	Derivative Financial Instruments – The Company determined that none of the conversion features within its currently outstanding convertible notes payable must be bifurcated and thus there was no derivative liability as of June 30, 2020 and September 30, 2019.
Stock Based Compensation	Stock Based Compensation
Convertible Securities	Convertible Securities
Net Loss per Share	Net Loss per Share As of June 30, 2019, there were options outstanding for the purchase of 2,437,668 common shares (excluding unearned stock option grants), warrants for the purchase of 17,797,090 common shares, and 4,894,071 shares of the Company’s common stock issuable upon the conversion of Series C and Series D Convertible Preferred Stock. In addition, the Company had 13,262,779 common shares (9,020,264 common shares at the current price of $0.25 per share and 4,424,515 common shares at the current price of $1.00 per share) and are issuable upon conversion of convertible debentures of $6,497,556. These amounts are excluded from the June 30, 2019 net loss per share because their impact is antidilutive.
Dividend Policy	Dividend Policy
Use of Estimates	Use of Estimates
Recent Accounting Pronouncements	Recent Accounting Pronouncements Based on the Company’s review of accounting standard updates issued since the filing of the 2019 Form 10-K, there have been no other newly issued or newly applicable accounting pronouncements that have had, or are expected to have, a significant impact on the Company’s consolidated financial statements.

6. PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Estimated June 30, 2020 September 30, 2019 Machinery and equipment 2-10 years $ 315,692 $ 412,238 Leasehold improvements 2-3 years 3,612 3,612 Furniture and fixtures 2-3 years 26,855 58,051 Software and websites 3-7 years - 35,830 Less: accumulated depreciation (238,416 ) (379,259 ) $ 107,743 $ 130,472

7. INTANGIBLE ASSETS (Tables)

7. INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Schedule of intangible assets	Estimated June 30, September 30, Useful Lives 2020 2019 Technology 3 years $ 520,000 $ 520,000 Less: accumulated amortization (375,553 ) (245,554 ) Intangible assets, net $ 144,447 $ 274,446

9. LEASES (Tables)

9. LEASES (Tables)	9 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of minimum future lease payments	Year $ 2021 $ 133,996 Imputed interest (32,164 ) Total lease liability $ 101,832

10. CONVERTIBLE NOTES PAYABLE_2

10. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Tables)	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Summary of convertible notes	June 30, 2020 September 30, 2019 Convertible note- Clayton A. Struve $ 1,071,000 $ 1,071,000 Convertible note- Ronald P. Erickson and affiliates 1,184,066 1,184,066 2019 Convertible notes 4,242,490 4,242,515 Q1 2020 Convertible notes 520,000 - Q2 2020 Convertible notes 195,000 - Q3 2020 Convertible notes 4,924,500 - Bousted fee refund (originally booked as contra debt) 50,000 - Less conversions (4,242,490 ) - Less debt discount - BCF (3,077,151 ) (1,273,692 ) Less debt discount - warrants (1,485,512 ) (616,719 ) Less debt discount - warrants issued for services (1,202,997 ) (652,919 ) $ 2,178,906 $ 3,954,251

11. EQUITY (Tables)

11. EQUITY (Tables)	9 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Summary of the warrants issued	June 30, 2020 Weighted Average Exercise Shares Price Outstanding at beginning of period 17,747,090 $ 0.455 Issued 3,485,425 1.211 Exercised (354,959 ) (0.923 ) Forfeited (213,983 ) (1.065 ) Expired - - Outstanding at end of period 20,663,573 $ 0.570 Exercisable at end of period 20,663,573
Summary of the status of the warrants outstanding	June 30, 2020 Weighted Weighted Weighted Average Average Average Number of Remaining Exercise Shares Exercise Warrants Life ( In Years) Price Exercisable Price 13,233,286 2.00 $ 0.250 13,233,286 $ 0.250 714,286 1.08 0.700 714,286 0.700 882,159 1.37 1.000 882,159 1.000 5,763,842 4.40 1.20-1.50 5,763,842 1.20-1.50 70,000 4.26 2.00-4.08 70,000 2.34-4.08 20,663,573 3.36 $ 0.570 20,663,573 $ 0.570
Weighted average assumptions relating to the valuation of the Company's warrants	Assumptions Dividend yield 0% Expected life 5 years Expected volatility 176%-177% Risk free interest rate 1.51%-1.71%

12. STOCK OPTIONS (Tables)

12. STOCK OPTIONS (Tables)	9 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stock option activity	Weighted Average Options Exercise Price $ Outstanding as of September 30, 2017 15,404 $ 14.68 $ 226,059 Granted 2,180,000 1.683 3,668,500 Exercised - - - Forfeitures (12,736 ) 14.764 (188,040 ) Outstanding as of September 30, 2018 2,182,668 1.698 3,706,519 Granted 2,870,000 2.615 7,504,850 Exercised - - - Forfeitures (520,000 ) (3.906 ) (2,031,000 ) Outstanding as of September 30, 2019 4,532,668 2.025 9,180,369 Granted 3,025,000 1.126 3,406,600 Exercised (73,191 ) (0.250 ) (18,298 ) Forfeitures (2,589,477 ) (2.656 ) (6,877,721 ) Outstanding as of June 30, 2020 4,895,000 $ 1.163 $ 5,690,950
Stock options outstanding and exercisable	Range of Exercise Prices Number Outstanding Weighted Average Remaining Life In Years Weighted Average Exercise Price Outstanding Number Exercisable Weighted Average Exercise Price Exercisable $ 0.25 230,000 2.96 $ 0.250 115,000 $ 0.250 1.10-1.25 2,940,000 4.35 1.36 270,833 1.139 1.28-1.50 1,610,000 4.35 1.31 585,625 1.292 1.79-2.25 115,000 4.00 0.96 65,000 0.852 4,895,000 3.94 $ 1.163 1,036,458 $ 1.186

15. SEGMENT REPORTING (Tables)

15. SEGMENT REPORTING (Tables)	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of segment reporting	Segment Gross Operating Segment Segment Revenue Margin Profit (Loss) Assets Three Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (932 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business - - (2 ) - Total segments $ - $ - $ (1,009 ) $ 5,040 Three Months Ended June 30, 2019 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (980 ) $ 3,150 TransTech distribution business 381 105 (45 ) 173 Total segments $ 381 $ 105 $ (1,025 ) $ 3,323 Segment Gross Operating Segment Segment Revenue Margin Profit (Loss) Assets Nine Months Ended June 30, 2020 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (4,368 ) $ 4,894 Particle, Inc. technology - - (75 ) 146 TransTech distribution business 122 52 4 - Total segments $ 122 $ 52 $ (4,439 ) $ 5,040 Nine Months Ended June 30, 2019 Development of the Bio-RFID™” and “ChromaID™” technologies $ - $ - $ (2,759 ) $ 3,150 TransTech distribution business 1,577 374 (81 ) 173 Total segments $ 1,577 $ 374 $ (2,840 ) $ 3,323

2. GOING CONCERN (Details Narra

2. GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Exercise Price 13.500
Net loss	$ (2,905,086)	$ (3,015,013)	$ (2,154,266)	$ (769,203)	$ (9,250,612)	$ (4,365,707)	$ (7,612,316)	$ (3,257,597)
Net cash used in operating activities					(2,666,115)	(1,899,417)	(3,104,035)	$ (1,117,131)
Non-cash expenses					6,613,451	$ 2,407,135
Accumulated deficit	$ (51,654,252)				$ (51,654,252)		$ (42,403,640)

3. SIGNIFICANT ACCOUNTING POL_3

3. SIGNIFICANT ACCOUNTING POLICIES: ADOPTION OF ACCOUNTING STANDARDS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Uninsured deposits	$ 4,412,371		$ 4,412,371
Allowance for accounts receivable	0		0		$ 40,000
Research and development expense	375,243	$ 441,541	1,313,546	$ 832,555	1,257,872	$ 570,514
Money market accounts	$ 4,352,188		$ 4,352,188		$ 1,901,278
Minimum
Estimated useful lives of assets			2 years
Maximum
Estimated useful lives of assets			10 years
Leasehold Improvements
Estimated useful lives of assets			5 years

4. ACCOUNTS RECEIVABLE_CUSTOM_2

4. ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION (Details Narrative) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable, net of allowance	$ 0	$ 63,049
Allowance for bad debt	$ 0	$ 40,000

5. INVENTORIES (Details Narrati

5. INVENTORIES (Details Narrative) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories	$ 0	$ 7,103
Reserve for impaired inventory	$ 0	$ 28,000

6. PROPERTY AND EQUIPMENT, NE_2

6. PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Machinery and equipment (2-10 years)	$ 315,692	$ 412,238
Leasehold improvements (2-3 years)	3,612	3,612
Furniture and fixtures (2-3 years)	26,855	58,051
Software and websites (3-7 years)	0	35,830
Less: accumulated depreciation	(238,416)	(379,259)
Property and equipment, net	$ 107,743	$ 130,472

6. PROPERTY AND EQUIPMENT, NE_3

6. PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 51,005	$ 70,265

7. INTANGIBLE ASSETS (Details)

7. INTANGIBLE ASSETS (Details) - Technology - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Technology (3 years)	$ 520,000	$ 520,000
Less: accumulated amortization	(375,553)	(245,554)
Intangible assets, net	$ 144,447	$ 274,446

7. INTANGIBLE ASSETS (Details N

7. INTANGIBLE ASSETS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense	$ 129,999	$ 129,999

8. ACCOUNTS PAYABLE (Details Na

8. ACCOUNTS PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Accounts Payable [Abstract]
Accounts payable - trade	$ 434,790	$ 810,943

9. LEASES (Details)

9. LEASES (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
Leases [Abstract]
2021	$ 133,996
Imputed interest	(32,164)
Total lease liability	$ 101,832	$ 246,136

9. LEASES (Details Narrative)

9. LEASES (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Right-of-use assets	$ 100,000		$ 243,526
Operating lease liabilities	101,832		$ 246,136
Lease cost	135,828	$ 133,996
Cash paid for ROU operating lease liability	$ 100,497
Weighted-average remaining lease term	1 year 9 months
Weighted-average discount rate	10.00%

10. CONVERTIBLE NOTES PAYABLE_3

10. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2019
less conversions	$ (4,242,490)	$ 0
less debt discount - beneficial conversion feature	(3,077,151)	(1,273,692)
less debt discount - warrants	(1,485,512)	(616,719)
less debt discount - warrants issued for services related to debt offering	(1,202,997)	(652,919)
Convertible notes, net	2,178,906	3,954,251
Convertible Note - Clayton A. Struve
Convertible notes, gross	1,071,000	1,071,000
Convertible Note - Ronald P. Erickson and Affiliates
Convertible notes, gross	1,184,066	1,184,066
2019 Convertible Notes
Convertible notes, gross	4,242,490	4,242,515
Q1 2020 Convertible Notes
Convertible notes, gross	520,000	0
Q2 2020 Convertible Notes
Convertible notes, gross	195,000	0
Q3 2020 Convertible Notes
Convertible notes, gross	4,924,500	0
Bousted Fee Refund (Originally Booked as Contra Debt
Convertible notes, gross	$ 50,000	$ 0

10. CONVERTIBLE NOTES PAYABLE_4

10. CONVERTIBLE NOTES PAYABLE AND NOTE PAYABLE (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Amortization of debt discount	$ 3,874,018	$ 1,736,357
Convertible Note - Clayton A. Struve
Accrued interest	69,671		$ 62,171
Convertible Note - Ronald P. Erickson and Affiliates
Accrued interest	$ 27,295		$ 73,964

11. EQUITY (Details)

11. EQUITY (Details) - $ / shares	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Jun. 30, 2020
Shares
Outstanding at beginning of period	17,747,090	17,747,090
Issued		3,485,425
Exercised	(28,688)	(354,959)
Forfeited		(213,983)
Expired		0
Outstanding at end of period		20,663,573
Exercisable at end of period		20,663,573
Weighted Average Exercise Price:
Outstanding at beginning of period	$ .455	$ .455
Issued		1.211
Exercised		(.923)
Forfeited		(1.065)
Expired		(.000)
Outstanding at end of period		$ .570

11. EQUITY (Details 1)

11. EQUITY (Details 1)	9 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of warrants | shares	20,663,573
Weighted average remaining life (years)	3 years 4 months 10 days
Weighted average exercise price, outstanding	$ .570
Shares exercisable | shares	20,663,573
Weighted average exercise price, exercisable	$ 0.570
Warrant One
Number of warrants | shares	13,233,286
Weighted average remaining life (years)	2 years
Weighted average exercise price, outstanding	$ .250
Shares exercisable | shares	13,233,286
Weighted average exercise price, exercisable	$ 0.250
Warrant Two
Number of warrants | shares	714,286
Weighted average remaining life (years)	1 year 29 days
Weighted average exercise price, outstanding	$ .700
Shares exercisable | shares	714,286
Weighted average exercise price, exercisable	$ 0.700
Warrant Three
Number of warrants | shares	882,159
Weighted average remaining life (years)	1 year 4 months 13 days
Weighted average exercise price, outstanding	$ 1
Shares exercisable | shares	882,159
Weighted average exercise price, exercisable	$ 1
Warrant Four
Number of warrants | shares	5,763,842
Weighted average remaining life (years)	4 years 2 months 24 days
Shares exercisable | shares	5,763,842
Warrant Four | Minimum
Weighted average exercise price, outstanding	$ 1.200
Weighted average exercise price, exercisable	1.200
Warrant Four | Maximum
Weighted average exercise price, outstanding	1.500
Weighted average exercise price, exercisable	$ 1.500
Warrant Five
Number of warrants | shares	70,000
Weighted average remaining life (years)	4 years 3 months 4 days
Shares exercisable | shares	70,000
Warrant Five | Minimum
Weighted average exercise price, outstanding	$ 2
Weighted average exercise price, exercisable	2.340
Warrant Five | Maximum
Weighted average exercise price, outstanding	4.080
Weighted average exercise price, exercisable	$ 4.080

11. EQUITY (Details 2)

11. EQUITY (Details 2) - Warrants	9 Months Ended
	Jun. 30, 2020
Dividend yield	0.00%
Expected life	5 years
Expected volatility, minimum	176.00%
Expected volatility, maximum	177.00%
Risk free interest rate, minimum	1.51%
Risk free interest rate, maximum	1.71%

11. EQUITY (Details Narrative)

11. EQUITY (Details Narrative)	Jun. 30, 2020USD ($)shares
Equity [Abstract]
Warrants vested | shares	20,593,573
Intrinsic value | $	$ 26,079,148

12. STOCK OPTIONS (Details)

12. STOCK OPTIONS (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Shares:
Outstanding at beginning of period	17,747,090	17,747,090
Shares granted		3,485,425
Shares exercised	28,688	354,959
Shares forfeitures		(213,983)
Outstanding at end of period		20,663,573	17,747,090
Weighted Average Exercise Price:
Outstanding at beginning of period	$ .455	$ .455
Shares granted		1.211
Shares exercised		.923
Shares forfeitures		1.065
Outstanding at end of period		$ .570	$ .455
Aggregate Intrinsic Value
Outstanding at end of period		$ 26,079,148
Stock Options
Shares:
Outstanding at beginning of period	4,532,668	4,532,668	2,182,668	15,404
Shares granted		3,025,000	2,870,000	2,180,000
Shares exercised		(73,191)	0	0
Shares forfeitures		(2,589,477)	(520,000)	(12,736)
Outstanding at end of period		4,895,000	4,532,668	2,182,668
Weighted Average Exercise Price:
Outstanding at beginning of period	$ 2.025	$ 2.025	$ 1.698	$ 14.68
Shares granted		1.126	2.615	1.683
Shares exercised		(.250)	.000	.000
Shares forfeitures		(2.656)	(3.906)	14.764
Outstanding at end of period		$ 1.163	$ 2.025	$ 1.698
Aggregate Intrinsic Value
Outstanding at beginning of period	$ 9,180,369	$ 9,180,369	$ 3,706,519	$ 226,059
Shares granted		$ 3,406,600	$ 7,504,850	$ 3,668,500
Shares exercised		$ (18,298)	$ 0	$ 0
Shares forfeitures		$ (6,877,721)	$ (2,031,000)	$ (188,040)
Outstanding at end of period		$ 5,690,950	$ 9,180,369	$ 3,706,519

12. STOCK OPTIONS (Details 1)

12. STOCK OPTIONS (Details 1)	9 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of outstanding stock options | shares	20,663,573
Weighted average remaining life (years)	3 years 4 months 10 days
Weighted average exercise price exerciseable	$ .570
Number exercisable | shares	20,663,573
Stock Option 1
Range of exercise prices	$ .25
Number of outstanding stock options | shares	230,000
Weighted average remaining life (years)	2 years 11 months 16 days
Weighted average exercise price exerciseable	$ .250
Number exercisable | shares	115,000
Weighted average exercise price exerciseable	$ .250
Stock Option 2
Number of outstanding stock options | shares	2,940,000
Weighted average remaining life (years)	4 years 4 months 6 days
Weighted average exercise price exerciseable	$ 1.36
Number exercisable | shares	270,833
Weighted average exercise price exerciseable	$ 1.139
Stock Option 2 | Minimum
Range of exercise prices	1.10
Stock Option 2 | Maximum
Range of exercise prices	$ 1.25
Stock Option 3
Number of outstanding stock options | shares	1,610,000
Weighted average remaining life (years)	4 years 4 months 6 days
Weighted average exercise price exerciseable	$ 1.31
Number exercisable | shares	585,625
Weighted average exercise price exerciseable	$ 1.292
Stock Option 3 | Minimum
Range of exercise prices	1.28
Stock Option 3 | Maximum
Range of exercise prices	$ 1.50
Stock Option 4
Number of outstanding stock options | shares	115,000
Weighted average remaining life (years)	4 years
Weighted average exercise price exerciseable	$ .96
Number exercisable | shares	65,000
Weighted average exercise price exerciseable	$ .852
Stock Option 4 | Minimum
Range of exercise prices	1.79
Stock Option 4 | Maximum
Range of exercise prices	$ 2.25
Stock Options
Number of outstanding stock options | shares	4,895,000
Weighted average remaining life (years)	3 years 11 months 8 days
Weighted average exercise price exerciseable	$ 1.163
Number exercisable | shares	1,036,458
Weighted average exercise price exerciseable	$ 1.186

12. STOCK OPTIONS (Details Narr

12. STOCK OPTIONS (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Options to purchase common stock under 2011 Stock Incentive Plan	20,663,573
Average exercise price under 2011 Stock Incentive Plan	$ 0.570
Compensation expense	$ 135,744	$ 359,051
Unrecognized compensation costs	$ 479,209
Period for recognition	3 years 11 months 8 days
Stock options granted	4,895,000
Aggregate intrinsic value	$ 2,679,000
2011 Stock Incentive Plan
Options to purchase common stock under 2011 Stock Incentive Plan	4,895,000

13. OTHER SIGNIFICANT TRANSAC_2

13. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES (Details narrative) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Chief Executive Officer
Accrued compensation, travel and interest	$ 575,797	$ 487,932

15. SEGMENT REPORTING (Details)

15. SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 0	$ 381	$ 122	$ 1,557
Gross margin	0	105	52	374
Segment operating profit (loss)	(1,009)	(1,025)	(4,439)	(2,840)
Segment assets	5,040	3,323	5,040	3,323
Development of the Bio-RFID and ChromaID Technologies
Revenue	0	0	0	0
Gross margin	0	0	0	0
Segment operating profit (loss)	(932)	(980)	(4,368)	(2,759)
Segment assets	4,894	3,150	4,894	3,150
Particle, Inc. Technology
Revenue	0		0
Gross margin	0		0
Segment operating profit (loss)	(75)		(75)
Segment assets	146		146
TransTech Distribution Business
Revenue	0	381	122	1,577
Gross margin	0	105	52	374
Segment operating profit (loss)	(2)	(45)	4	(81)
Segment assets	$ 0	$ 173	$ 0	$ 173